Potential risks in financial system are being addressed

China's central bank expressed confidence in the stability of the country's financial system on Thursday after an assessment report by the International Monetary Fund highlighted potential risks.

The report, which is part of the update of the China Financial Sector Assessment Program first carried out in 2009-11, acknowledged the achievements that have been made in implementing economic and financial reforms, but also said that the increasing complexity of China's financial system has sown seeds that undermine its stability.

While calling the recommendations highly relevant in the context of deepening financial reform in China, the People's Bank of China said there were descriptions and views in the reports it did not agree with, such as those of the outcomes of the stress testing of lenders, which it felt did not reflect the true situation and the strong capability of China to fend off potential risks.